November 27th, 2012
Purchasing a house is one of the largest investments a person may make in his or her lifetime. So when it’s time to begin shopping for a loan and comparing different options, working with a mortgage consultant can be a great asset. However, a new study shows that many first-time buyers fail to heed this advice.
According to a new study from Fannie Mae, most Americans fail to investigate all of their mortgage options, which can lead to lost opportunities and unnecessary spending. In addition, not consulting a professional may also cause problems to arise over the life of the loan.
“Homeowners who don’t obtain multiple mortgage offers or carefully compare rates are essentially leaving money on the table, particularly given today’s unprecedentedly low interest rates,” said Fannie Mae chief economist Doug Duncan. “Although a home purchase is the largest financial obligation most people will ever make, many borrowers do not fully understand their mortgage products and costs. As a result, some homeowners in this position may find themselves with unsustainable payments down the road.”
To avoid these issues, it’s crucial that buyers work with a mortgage service company prior to submitting an application so they can first educate themselves on the items they will need to apply, the loan amount they may qualify for and the loan type that best suits their financial situation.